Interest rate cut: the winners and losers
The Bank of England's base rate cut is not good news for everyone

The Bank of England's decision to cut its base rate from 4.5% to 4.25% was widely expected, but marks an "important moment for the UK economy", said BBC News.
Rates are "down a full percentage point from their peak" this time last year, and further "gradual and careful" cuts are on the horizon in 2025.
But who stands to gain from the decision, and who will be left counting the cost?
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Mortgage payers: winners
An interest rate cut is likely to help homeowners nearing the end of a fixed-term mortgage, as well as prospective buyers, but lenders usually work to the longer-term interest rate forecast.
Still, it's likely to be "music to mortgage borrowers' ears", said ThisisMoney, especially those on tracker mortgages, who should see an "immediate benefit".
Savers: losers
The cut is "unequivocally bad news" for savers, said Isaac Gross, economics lecturer at Monash University, on The Conversation. With money "growing more slowly", it's harder to build income "over time".
But "don't worry", said Akoni Hub – if you're "proactive", you "don't have to settle for low returns – even with a base rate cut". In fact, it can be the "perfect nudge" to research better deals, often offered by challenger banks keen to "attract new customers".
Small business owners: winners
Smaller businesses "historically" benefit from rate cuts, said Aberdeen Investments They typically deliver "higher returns" after a rate cut when compared to larger companies, as they "tend to have more exposure to the UK domestic economy".
Retired people: losers
Left work? The chances are that you "rely on income from interest-bearing assets" to fund your retirement, including fixed-term or cash savings accounts, said Gross on The Conversation.
Coupled with a cost-of-living crisis, a base rate cut "only makes things worse" as returns for this group "shrink", making it hard to fund a typical lifestyle in retirement.
As retirees have "less time to ride out any market turbulence, as is currently being experienced", said The Telegraph, their cash savings growth will be impacted.
However, with Donald Trump's tariffs to also contend with, and ongoing "market chaos", some pensioners suggest "as much as £120,000" has been lost from the value of their retirement pots.
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Rebekah Evans joined The Week as newsletter editor in 2023 and has written on subjects ranging from Ukraine and Afghanistan to fast fashion and "brotox". She started her career at Reach plc, where she cut her teeth on news, before pivoting into personal finance at the height of the pandemic and cost-of-living crisis. Social affairs is another of her passions, and she has interviewed people from across the world and from all walks of life. Rebekah completed an NCTJ with the Press Association and has written for publications including The Guardian, The Week magazine, the Press Association and local newspapers.
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